Paul Grewal, the chief legal officer of Coinbase, has stated that the cryptocurrencycurrency exchange has now formally commented to the SEC, asking for more information regarding the Grayscale Ethereum Trust’s listing for trade. Coinbase provided technical, legal, and financial backing in a letter to the SEC for the ETF’s approval.
According to Grewal, Ethereum was never a security, even before the most recent Merge upgrade. He maintained that Ether has not been handled like a security, but rather like a commodity by the CFTC, the SEC, and market players. As early as May 2023, according to analysts, the SEC might authorize spot Ether ETFs.
Grayscale and NYSE Arca submitted a proposal in October of last year to turn the Grayscale Ethereum Trust into a spot Ether ETF. According to Coinbase, an Ether ETF would benefit even more from the same reasoning that led to the SEC’s approval of Bitcoin ETFs. It pointed to Ethereum’s strong pricing stability, narrow spreads, and extensive liquidity as proof that it is resistant to manipulation.
Spot Ether ETF launches in the US might be quite advantageous for Coinbase’s custodial services division. Currently serving as a custodian for eight Bitcoin ETFs, Coinbase is recognized internationally as a reliable source for yield-producing Ether ETFs. Spot Ethereum ETF investments would allow exposure to the public market without requiring direct asset ownership.
More From Crypto SA
